Precious metals remain almost unchanged

Gold does not change but silver rises
Gold prices remained almost unchanged on Wednesday, 10 June, 2009. On one hand, prices were pulled up by rising crude price increasing their appeal as a hedge against inflation but at the same time strong dollar also pushed the prices down. But silver ended higher.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Wednesday, Comex Gold for June delivery ended at $954.7 an ounce on the New York Mercantile Exchange. Earlier during the day, it rose to a high of $966.7 and also fell to a low of $947.5. Last week, gold ended lower by 1.8%. Year to date, gold prices are higher by 10%.
Gold had ended the month of May higher by 9.8%. It was the highest monthly gain registered by gold in six months. Before this, gold had suffered losses in prior two months. For the month of April and March, 2009, gold had lost 3.7% and 2.1% respectively. But the metal gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (8%) since then.
On Wednesday, Comex silver futures for July delivery rose 8.5 cents (0.5%) at $15.225 an ounce. Last week, silver ended lower by 1.4%. For the month of May, silver gained 26.6%. It was the biggest monthly gain for silver in more than two decades. Year to date, silver has climbed 36% this year. For 2008, silver had lost 24%.
In the currency market on Wednesday, the dollar reversed its earlier losses. The dollar index, which weighs the strength of dollar against the basket of six other currencies, went up 1.3% at 80.541.
July crude rose $1.32, or 1.9%, to end at $71.33 a barrel on the New York Mercantile Exchange, closing at the highest level for a front-month contract in almost eight months.
EIA reported today that crude inventories fell by 4.4 million barrels in the week ended 5 June, 2009. On average, a build of 100,000 barrels was expected. Crude imports fell 676,000 barrels a day from the previous week, while gasoline demand over the past four weeks rose 0.4% from the same period last year, the report showed.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for August delivery closed lower by Rs 12 (0.08%) at Rs 14,595 per 10 grams. Prices rose to a high of Rs 14,720 per 10 grams and fell to a low of Rs 14,525 per 10 grams during the day's trading.
At the MCX, silver prices for July delivery closed Rs 18 (0.07%) higher at Rs 23,575/Kg. Prices opened at Rs 23,650/kg and roe to a high of Rs 23,945/Kg during the day's trading.